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TMI Blog1969 (5) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... SANKAR PRASAD MITRA., SABYASACHI MUKHERJEE. JUDGMENT SANKAR PRASAD MITRA J.-The assessee is an unregistered firm which deals in shares as well as in paper manufactured by Orient Paper Mills, Ltd. For the assessment year 1957-58 (the accounting year being the financial year ending on the 31st March, 1957), the assessee claimed deduction of a sum of Rs. 1,07,125 as business loss. This loss was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the form of acceptance in relation to such shares. These renunciation letters were dealt with in the Calcutta Stock Exchange and were regularly quoted. The assessee purchased renunciation letters giving the right to allotment of 75,000 shares for a total sum of Rs. 5,04,296. Subsequently, the assessee sold these letters of renunciation for a total price of Rs. 3,97,171, suffering a loss of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature and he treated the loss of Rs. 1,07,125 as speculation loss to be carried forward as such. The Appellate Assistant Commissioner held that the letters of renunciation were neither "commodity" nor "scrip" but were more or less akin to pucca delivery orders used in the jute trade which were neither "goods" nor "commodity". The Appellate Assistant Commissioner sustained the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a business loss allowable as a deduction, in the assessee's assessment for the year 1957-58 ?" Mr. A. K. Basu, learned counsel for the department, contends before us that a sale of letters of renunciation means a sale of shares which is not completed by actual delivery. But we are unable to accept this contention. Letters of renunciation are executed when a shareholder renounces his right to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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